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Chinese competitors are closing in on the TV market leader

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Chinese competitors are closing in on the TV market leader

Chinese TV brands are closing the gap on market leader Samsung
(photo: CC0 Public Domain)

Samsung Electronics, which heads world TV market for the 17th consecutive year, is already feeling close competition from Chinese manufacturers. This indicates an analysis of Business Korea, based on data from a recent study by the research company TrendForce.

Estimates for global TV shipments in the second quarter indicated that in the April-June period, TV makers shipped about 46.63 million units, improving on the first-quarter result by 7.5%. According to TrendForce, 43.37 million TVs entered the global market in the January-March period.

Comparison with last year’s data shows a growth of 2 percent. This is the first annual increase in the last seven quarters, indicating a normalization of the level of inventories after a long period of their reduction, analysts emphasize.

Experts see the main reason for the growth of the TV market in the increased activity of brands from China, provoked by the June shopping festival “618”, which takes place in the country every year on June 18. This is also proven by the volume of deliveries from Chinese manufacturers.

TrendForce estimates that in the April-June period, Chinese companies Hisense and TCL shipped 7.25 and 6.2 million TVs, respectively, worldwide. This is 21.2% and 19.7% higher than their results in the previous quarter, and year-on-year growth is 33.3% and 21.6%, respectively. Hisense’s performance is most impressive in the ranking of leading TV brands.

Nevertheless, Samsung Electronics remains the market leader, with analysts estimating quarterly shipments of its TVs at 8 million units. However, the company recorded quarterly and annual declines in shipments of 13% and 4.8%, indicating increasing competitive pressure on the Korean manufacturer.

The situation is similar with another leading TV manufacturer from South Korea – LG Electronics. According to preliminary estimates, the company shipped just under 5 million TVs in the second quarter, down 12.3% from the previous quarter and 6.7% from the second quarter last year.

Among the top five TV brands is Xiaomi, which shipped 2.99 million TVs in the second quarter. The remaining players in the TV market shipped less than 18 million devices in the April-June period.

Looking ahead, TrendForce expects further growth in TV shipments in the third quarter. Their volume should increase by 13.5% compared to the second quarter and reach 53 million units.

However, analysts warn that demand continues to be constrained by high inflation and most consumers prefer to buy cheaper models. As a result, in the last quarter of 2023, global TV market growth may slow to 4.5% with expected shipments of 55.13 million units.

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